It has been five years since an investment-based permanent residency program was introduced in Jeju. Since then, nearly 1,600 visas have been awarded to non-Koreans who have met the investment requirements. The provincial government now wants to impose stricter limits on the program. Joseph Kim has more.

Currently, land ownership by Chinese investors on Jeju Island is recorded at 6,900 parcels, totalling 11,730,000 square meters. That’s 4 times the size of Yeouido and 40 times of Marado island.

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1,600 people granted permanent residency based on investments

After the real estate investment visa system was introduced in 2010, which offers permanent residency to those who purchase property valued at 500 million won and maintain ownership for 5 years, wealthy Chinese investors have been coming in droves.

Since its introduction, 1,580 residential visas have been issued and over 1 trillion won in investments made. Chinese capital accounts for 98.5% of that total.

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Concerns about sprawling development

Even though results were overall positive after real estate investment visas were introduced, sprawling development was an unwelcome side-effect from attracting the Chinese investors.

As a result, the Jeju Special Self-Governing Province decided to revise the real estate investment visa policy to restrict the influx of foreign capital.

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New restrictions proposed for investment-based visa program

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Ko Moon-su

It has been proposed to the Ministry of Justice that applicable areas of real estate investment visas should be restricted to the Tourism Complex and tourist sites and it has been accepted and announced. It seems investment hotels developed by Chinese are experiencing difficulties.

[INTERVIEW]
Hyun Seong-ho / Provincial foreign investment policy division
According to the Tourism Promotion Act, it is only applicable to designated tourism complexes and sites. It has been mostly focused on investment hotels so far, but once the new system introduced, foreign investment promotion will become a dynamic force of new growth.
관광진흥법에 의해 관광지나 관광단지로 지정돼야 적용이 됩니다. 지금까지 분양형 콘도개발사업에 집중이 됐는데 이 제도가 시행되면 새로운 성장//
**수퍼체인지**
동력산업으로 투자유치가 확대될 것으로 기대하고 있습니다.

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Joseph Kim

The change will be applicable to those who receive business approval from 2017.

It remains to be seen whether the amendment will be able to spur new investment and reign in the unbridled construction that has affected the island.

Joseph Kim, KCTV.